Dollar Hits 16-Month High as Treasury Yields Soar

The US dollar reached a 16-month high against the euro and Swiss franc as investors adjusted their expectations for upcoming economic data that could influence the Federal Reserve's interest rate-hiking cycle.

US Treasury yields hovered near multi-year highs, reaching above 5%, which contributed to the dollar's strength.

The Australian dollar weakened after the Reserve Bank of Australia raised interest rates as expected.

Economists point out that investors are closely monitoring economic data, including jobs and inflation reports, to determine if the current Fed board is justified in its hawkish stance.